Photronics, Inc. · NASDAQ:PLAB
Photronics — Q2 2020 Earnings Presentation
14 slides from Photronics's earnings presentation, May 27, 2020
Slide 1: Photronics, Inc. Q2 2020 Financial Results Conference Call
Photronics, Inc. Q2 2020 Financial Results Conference CallMay 27, 2020
Slide 2: Safe Harbor Statement
Safe Harbor Statement 2 This presentation and some of our comments may contain projections or other forward-looking statements regarding future events, our future financial performance, and/or the future performance of the industry. These statements are predictions, and contain risks and uncertainti
Slide 3: Response to COVID-19: Four Key Focus Areas
Employee healthHealth monitoringAdoption of best practicesGlobal visitor policyRaw material supplyWeekly meetings to monitor global supply chainConstant contact with suppliersCustomer supportOpen communications with customers to understand needsConstant contact with logistic partnersTool maintenance
Slide 4: Q2 2020 Summary
Revenue was $142.8M, down 11% Q/Q and up 9% Y/YFPD production remained at capacity, with sequential mix shift away from G10.5+ and AMOLED as customers in China pushed out ordersIC revenue impacted by order push out from China customersRevenue of products shipped to China improved 39% Y/Y, but fell 2
Slide 5: Income Statement Summary
$M (except EPS) Q220 Q120 Q/Q Q219 Y/Y Revenue $ 142.8 $ 159.7 (11%) $ 131.6 9% Gross Profit $ 30.4 $ 34.6 (12%) $ 26.0 17% Gross Margin 21.3% 21.7% (40 bps) 19.8% 150 bps Operating Income $ 12.7 $ 16.3 (22%) $ 9.2 38% Operating Margin 8.9% 10.2% (130 bps) 7.0% 190 bps Other income (expense) ($ 1.0)
Slide 6: IC Photomask Revenue
High-end flat Y/Y; sequential decline primarily due to Chinese order push outsChina revenue +14% Y/YQ/Q down 21% on soft foundry demandRepresents 21% of Q220 IC revenueOutlookDemand trends improvingGovernment restrictions and trade policy developments create uncertainty $M Q220 Q120 Q/Q Q219 Y/Y Hig
Slide 7: FPD Photomask Revenue
Y/Y growth due to production ramp in Hefei; Q/Q decline due to China order push out (G10.5+ & AMOLED)China revenue -20% Q/Q; +69% Y/YRepresents 57% of Q220 FPD revenueOutlookDemand trends improving for G10.5+ and AMOLEDGovernment restrictions create uncertainty, especially for mobile demandProductio
Slide 8: Select Financial Data
$M Q220 Q120 Q219 Cash $ 238 $ 218 $ 167 Debt $ 53 $ 54 $ 36 Net Cash* $ 184 $ 164 $ 131 Operating Cash Flow $ 31 $ 31 $ 17 Capital Expenditures $ 16 $ 14 $ 34 Government Incentives for Capital Equipment $ 3 $ 2 $ 1 Share repurchase $ 6 $ 11 - Debt is local China borrowing to finance fixed assetsFY
Slide 9: Q3 2020 Guidance
Revenue ($M) $145 - $155 Operating Margin 9% - 12% Taxes ($M) $4.5 - $5.5 EPS $0.11 - $0.17 Diluted Shares (M) ~65 High uncertainty related to coronavirus reactionFPD demand growing (AMOLED, LTPS, G10.5+)High-end IC markets stable to improving; ramping Xiamen productionPotential geopolitical headwin
Slide 10: Thank you for your interest!
Thank you for your interest! For Additional Information:R. Troy Dewar, CFAVice President, Investor Relations203.740.5610tdewar@photronics.com
Slide 11: Appendix
Appendix
Slide 12: Total Revenue
Total Revenue 12 IC FPD Total may differ due to rounding
Slide 13: IC Photomask Revenue
IC Photomask Revenue 13 Mainstream High-End High-End: 28nm and smaller; total may differ due to rounding
Slide 14: FPD Photomask Revenue
FPD Photomask Revenue 14 Mainstream High-End High-End: ≥G10.5, AMOLED and LTPS; total may differ due to rounding